If Canada has a comparative advantage over Denmark in the production of wood, this implies that
a. it requires fewer resources in Canada than in Denmark to produce wood
b. the opportunity cost of producing wood in Canada is lower than in Denmark
c. Denmark does not benefit by trading with Canada
d. Canada should buy wood from Denmark
e. Canada does not benefit by trading with Denmark
B
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Other things equal, if planned investment spending is greater than actual investment spending, then aggregate expenditure will be ________ real GDP and inventories will ________
A) greater than; rise B) greater than; fall C) less than; rise D) less than; fall
The exclusive rights of ownership that allow the use, transfer, and exchange of property are called
A. transaction costs. B. private property rights. C. common property rights. D. social benefits.
One major consequence of the overconfidence effect is that:
A. Some people cannot correct a personal trait that might be causing them to fail in many ventures B. Someone could persist in pursuing a failed policy despite overwhelming evidence of the failure C. Bad decisions can be made because people will act without pausing to see whether their intuition is correct or not D. Some people may wrongly believe in their forecasting ability to predict future outcomes of risky investments
If an economist observed that higher hot dog prices lead to a decrease in the demand for chili, she most likely would conclude that:
A. chili and hot dogs are both inferior goods. B. chili and hot dogs are substitutes. C. chili and hot dogs are complements. D. chili and hot dogs are both normal goods.